I would add a couple more… have co-workers that haven’t checked on their 401k accounts since they started at the company 10 years ago. A lot of their investments don’t make sense now. Also being too conservative on what you invest in especially when young. Lastly include your 401k holdings when doing a portfolio analysis. A lot of times there is over lap between account types.
Employee stock purchase plan lets us buy stock at 15% discount up to a certain amount each year. Hard to turn that down. I think you just need to keep it for 2 years to avoid additional taxes.
Remember Enron before you sink too much of your portfolio with the employer your monthly income depends on. If the company goes bankrupt you lose your savings and your income. Take advantage of ESP but diversify.
All part.of a well rounded portfolio. Nothing wrong with paying capital gains in retirement rarger than ordinary income. Great for estate planning as well
If it's not a 401k roth then you can't roll over to a Roth. Traditional 401k might match but it not all that much to the losses and gains. My 401k I had no control on my investment and they increased the limit to knew rules. Ira wroth is much better
One more tip. Keep in mind that the government could change the distribution rules at any time. Contribute up to the match only, pay the tax and invest any extra into something else. No one wants to contribute to a 401k for 30 years and have the rug pulled out from under them at retirement by greedy politicians who decided to change the tax rules on 401k’s.
I agree with these except number five I think unless it’s a very large amount of money, you should leave and never stay just for vesting. #4 is SO CRUCIAL. Many people jerk around with their portfolios and they constantly score it up, costing tens of or even six digits in gains due to their idiocy. ALWAYS BE BUYING. Buy an sp500 index month after month and ignore bad or good news. Buy and leave it there.
@@patty109109 3) Buying company stock especially at great discount is a good deal with caveat to limit purchase to ~10% 7) He miscalculates cost of 401(k) loan claiming $50k loan cost $30k as he forgets to consider 401(k) loan (5 year $50k @ 5% costs is $941 month) is being paid back monthly so $941 monthly at 10% for 5 years equals $72.6k
Compound interest is the beauty of the 401K.
Such a good video, way more realistic than other videos out there.
Thank you!
I would add a couple more… have co-workers that haven’t checked on their 401k accounts since they started at the company 10 years ago. A lot of their investments don’t make sense now. Also being too conservative on what you invest in especially when young. Lastly include your 401k holdings when doing a portfolio analysis. A lot of times there is over lap between account types.
Yeah it’s good to know what you have, right?
I love this exchange
Employee stock purchase plan lets us buy stock at 15% discount up to a certain amount each year. Hard to turn that down. I think you just need to keep it for 2 years to avoid additional taxes.
Remember Enron before you sink too much of your portfolio with the employer your monthly income depends on. If the company goes bankrupt you lose your savings and your income. Take advantage of ESP but diversify.
All part.of a well rounded portfolio. Nothing wrong with paying capital gains in retirement rarger than ordinary income. Great for estate planning as well
when it goes down, I go in head first.
I love 2008...I was putting in like crazy turned out the best decision! Love to see hugh drop again!
How many people took 401K withdrawals during COVID when the government relaxed regulations and allowed up to 100K I believe .
Wow. I didn’t even know about that one.
People who will be complaining they don’t have enough to retire on.😂😂
Let’s Assume is a tricky word
If it's not a 401k roth then you can't roll over to a Roth. Traditional 401k might match but it not all that much to the losses and gains. My 401k I had no control on my investment and they increased the limit to knew rules. Ira wroth is much better
You can roll 401k to IRA and then to ROTH.
Sometimes I think I'm crazy I dumped in almost $2,000 a month into my 401
Same. But then I look at my income projections when I retire in 2036 and I am reminded of the importance of dicipline.
One more tip. Keep in mind that the government could change the distribution rules at any time. Contribute up to the match only, pay the tax and invest any extra into something else. No one wants to contribute to a 401k for 30 years and have the rug pulled out from under them at retirement by greedy politicians who decided to change the tax rules on 401k’s.
True. There is always a future risk of changing the rules. Thanks for the comment
#2 I don't really understand, so my employer match is 8% is it necessary to match that and that's my contribution in my 401k.Thanks
Yes. Definitely do that. 8% is a great match. Mine only matches 4%
Mine matches 5.25%; definitely worth matching it
Please invest 8% of your income to take advantage of your employer’s match. You will be double your investment. Not many companies match 8%.
I agree with these except number five I think unless it’s a very large amount of money, you should leave and never stay just for vesting.
#4 is SO CRUCIAL. Many people jerk around with their portfolios and they constantly score it up, costing tens of or even six digits in gains due to their idiocy. ALWAYS BE BUYING. Buy an sp500 index month after month and ignore bad or good news. Buy and leave it there.
It's the best wealth building until rmd. Then it's kinda garbage.
That’s why strategic Roth conversions early in retirement and delaying social security can help manage the RMD hit.
Who is this guy. Some bs guy. This guy know nothing
His points are good actually.
@@patty109109 3) Buying company stock especially at great discount is a good deal with caveat to limit purchase to ~10% 7) He miscalculates cost of 401(k) loan claiming $50k loan cost $30k as he forgets to consider 401(k) loan (5 year $50k @ 5% costs is $941 month) is being paid back monthly so $941 monthly at 10% for 5 years equals $72.6k